Were You Affected By Today's ICE DXY Order Cancellation? Let Us Know

Tyler Durden's picture

Due to numerous external inquiries and complaints, we would like to solicit reader input from those traders who were impacted by the ICE's cancellation of 12,000 DXY contracts voided on November 3rd (8,000) and also today on November 20th (4,000). As a reader submits:

Talking to ICE, all of these trades in question involving these spike highs were busted (ICE would give no explanation as to why the trades were busted, written or verbal). Thus, we just spoke to our attorneys and are contemplating the possibility of filing a federal "class action" claim, or a federal arbitration claim, against ICE and their affiliated exchanges for erroneously busting these trades. We are interested in forcing them to disclose who (i.e. firms, maker makers, etc.). participated in these cancelled trades, at what price and volume, and request WHY these trades were cancelled.

So if you had any direct capital loss as a result of the DK'ed trades, please leave a comment or send us an email.

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Anonymous's picture

Great Job.....you guys are the best. They did the same thing several weeks back. Nov 3 5:00am - they canceled high prints with no explanation given.

Cursive's picture

Wouldn't we all be affected?  It has been widely documented, in the pages of ZH no less, that we have a dollar vs. all other assets trade going on.  I read "direct capital loss as a result of the DK'd trades, but are you considering anyone with collateral damage?

Apocalypse Now's picture

Weeks ago I had purchased 200 UUP calls expiring 11/21 with a strike price of 23 after I saw the news break here that a number of individuals had bought significant calls.  If the trades had been allowed to go through, UUP would have been in the money to say the least.  Instead, they will expire worthless because the financial cabal does not want to lose money (in other words they were on the wrong side of the trade - shorting the USD, how un-american ;) ).  Apparently, they don't want a strong US Dollar - we should be able to get a populist anger up about that.

malusDiaz's picture

Aye same, I have/had NOV 23 UUP calls (I'm small time)

If these trades had posted I would be ITM. 

I may not be direct damage, but this collateral damage hit me as well

agrotera's picture

I wish there was more public understanding of the PPT that operates under Executive Order 12631   ( http://www.archives.gov/federal-register/codification/executive-order/12631.html ) .  This order allows any action "legal" who decides what is legal and where is the accountability?  Sadly, the whole FOIA will not help us since this little puppy is likely sequestered away under the title of national security--and if that is so, i guess the public needs to know that the primary dealers and all of their proprietary trading and their nudges and winks to affiliate funds is also part of national security (i said sarcastically) .

If all of the individual investors knew that the government was stepping in to drive up and down different markets 'all for our own good and to save us from the world end of the world as we know it', i wonder who would continue to consider their money in the market as "investment funds" instead of classifying the funds more appropriately as "gambling" funds.

The Audit the Fed bill ( S604) would have a better chance of passing if the public knew about the actions of the PPT.  Seriously, the public only needs to get a whiff of this for there to be a huge outcry to simply shut down the privately held federal reserve corporation. 

donatoloscalzo's picture

Yes Tyler I had just bought one DXZ9 at 75.630 when it sat back on the pivot finding support on it and then about 15 minutes later it shot up. I sold it at 79.500 pocketing a nice profit of about $ 4,069.50 in a matter of minutes. We trade with Interactive Brokers and after abou one hour they just took the money out and sent a communication online reverting the transaction................

Let me know if or what I can do.

Keep up the excellent job!!

Racer's picture

What if they were legitimate trades? And not a fat finger?

But that could cause a big equity sell off and can't be having that can we? But... if it could have caused a big equity surge, not a peep would be uttered about it.

SV's picture

Precisely the point - The can't have a short squeeze and that is exactly what those two events point to.  When a coordinated print(s) hit that is exactly what you get.

Stoploss's picture

Couldnt agree more, i was expecting a 9% down day also. But, if the dollar went down 9% today we'd be havin us a partee right now. This gets more silly by the day to the point it's laughable.

lizzy36's picture

happened on nov 3rd as well.

early morning dollar spike, futures tank,  and then puff (not like the magic dragon) the dxy trades just disappear. 

Anonymous's picture

I'll save you some time. ICE will probably tell you to piss off and direct you to read their rules:

https://www.theice.com/publicdocs/rulebooks/futures_us/27_Electronic_Tra...

The relevant section is Appendix 1.

nonclaim's picture

My understanding is that trades are busted when, and only when, the counterparty agrees. Say the party made a mistake and you agree to void it because next time it may be you the fat finger. All between gentlemen, but not all of them.

Now the exchange jump ahead and say it's busted because they say so. Bad business. They must come clean and disclose all information or the affected counterparties may go elsewere. Lack of confidence can blow up a financial institution overnight.

Anonymous's picture

I've been on both sides of many busted trades. It isn't gentlemanly. Everyone wants the best price they can get. If the other guy screwed up... I'm not going to feel bad about it. He wouldn't for me, either. On certain occasions, exchanges will offer a "bust or adjust" in which they will ask the "benefiting" side if they are willing to offer the side that screwed up a more reasonable price, in the interest of avoiding a ruling by the exchange (most likely a trade bust.)

The exchanges have general guidelines that they follow when evaluating whether to bust trades. But, the final guideline is "we do what we want." To say they can be inconsistent in rulings/explanations is an understatement.

(Note: I have no experience with ICE specifically.)

buzzsaw99's picture

Bust a deal, face the wheel. [/mad max]

Cognitive Dissonance's picture

Mad Max Beyond Thunderdome. Tina Turner was HOT in that film.

http://www.imdb.com/title/tt0089530/

Apocalypse Now's picture

You saw the news that the HKMA bought 2 billion US dollars, this may be related.  It could be considered an act of intentional financial sabotage, or merely an attempted investment.  Delivery on the physical gold and silver comex contracts should be interesting (Asian).

We must get to the bottom of this, it shakes confidence in our markets to post trades and then have them wiped out.  Someone should share the inside scoop with a leak.

Anonymous's picture

i have a UUP position of 1000 shares bought 1.5 mo ago.

Anonymous's picture

These future trades were cancelled because they represented moves outside the market norm (usually considered 1%, but decision made only after investigation). Nothing unreasonable in cancelling, but the question remains, who placed the orders and why? See the following:

LONDON (MarketWatch) — The IntercontinentalExchange is probing trades in U.S. dollar index futures that briefly showed a massive 9% jump on Friday morning. The lead contract surged as high as 82.18, up from a 75.38 close on Thursday. Such a move was improbable given that in spot markets, the dollar’s moves against major currencies such as the euro were limited to about 1%. See Currencies.

The ICE agreed, and according to an exchange official, all trades above 76.50 were being cancelled. The ICE was still investigating the cause of the incident, the official said. Dollar index futures were still elevated after the incident, up a more modest 0.7% to 75.91. The move briefly had an impact on other markets, as futures on the Dow Jones Industrial Average fell as much as 99 points

blackebitda's picture

yeah i got impacted this AM. if a tree falls in the forest and no one hears it fell silent. 

mikey00's picture

Yes I had 1 busted and my 8 other orders were very questionable.  I saw the spike and sent all 9 of my dx longs to sell at the market.  For SOME REASON only 1 was filled at 79.09 and the 8 others never filled at the market even after being in there for more than 15 mintutes after the spike...(something very fishy).  I finally got a call saying my 1 order being "busted" and my 8 other OPEN MARKET ORDERS were never filled even though they had been sitting in there when things quieted down???  THANK YOU ZERO HEDGE!!

nonclaim's picture

Maybe your orders were routed into a smaller exchange (even in house) were no bids were available. It happens and they don't get re-routed. Ask them were your orders were sitting, say you are considering to move elsewhere if the answer is not clear.

mikey00's picture

Thanks nonclaim, I am pretty disgusted about the whole situation.  Hopefully zero-hedge will help me get my trades back that were unrightfully taken away from me!!

Anonymous's picture

TYLER / We'd like to compliment you on "stepping out of the box" on this story and following it up. We have been in touch with various news agencies who say they will be further investigating this story as well. We also plan to have our attorneys contact ICE directly next week as we gather more information. They feel that in order to pursue either a class action claim or class action arb claim, one must of directly have had their trade "cancelled" by ICE and suffered "suffered direct loss or damages" from their actions. Enough is enough. Responsible parties need to be held accountable for their actions, or negligence, in matters affecting the public such as this. Clearly, ICE is not properly managing their platform in order to protect investors (large & small) and maintaining proper exchange procedures. Thank you in the public's interest.

aint no fortunate son's picture

We were ALL affected by the busted trades. Anyone who is in any US markets was told today with absolute clarity that the Administration, the Fed, and the exchanges will do ANYTHING to prop the markets up, ANYTHING to beat short sellers or contrarians into submission, ANYTHING to stamp out any type of "financial dissent" that might be expressed against this government's economic policies. That was just some of Obama's ward bosses using their clubs today.

Anonymous's picture

Come on guys how can you expect a trade like this to go through if Goldman is not properly positioned short on the market!

Only servants of God can make such a trade stick.

Ten bucks says this trade will eventually happen but that we will see an equally unusual trade in the SPY futures short and or treasury futures long before it does.

It will be a blatant, right out in the open, cram/jam job like with those Bear put options

agrotera's picture

well said Anony--key phrase:

 "It will be a blatant, right out in the open cram/jam job like with those Bear Put options."

...it's just another day of government sanctioned capital market criminality...

(and for your listening pleasure:

http://www.youtube.com/watch?v=Y3nVqLfPBtw )

lizzy36's picture

and just like clockwork, the dj is green, spx soon to follow. 

amusingly this just appeared on my news waterfall:

3:43 (Dow Jones) In a letter to the SEC Friday, Sen. Ted Kaufman (D-Del.) urged the commission to move quicker in addressing "manipulative high frequency trading algorithms and end so-called 'sponsored access.'" The SEC has already stated it will be reviewing both issues with proposals expected in the summer of 2010 and then debated for a period of a couple months thereafter. Kaufman, however, believes too much is at stake to wait that long. "The Commission must not let months go by without taking meaningful action".

phaesed's picture

85 Broad St: Hey, we can't have the dollar go down today, we sold a lot of puts and if we lose money that could be a terrorist like situation.

33 Liberty: Oh, okay, what do you need me to do?

----------

This was across all asset classes, look at RIMM & AMZN, large gap down but the banks got them back up.

However, the shit with the guy actually having money pulled out of his account?

That's just &*($^&$ up.

---

Oh yeah... rally to the strike price without the drop in the dollar.

translation: Banks are scared shitless and covering shorts from retailers who are shorting like the idiots they are.

smalls's picture

grow up, this stuff happens. 45mins after is bogus but if it hurts your pocket you should be on the phone directly after it happens to the exchange.

Anonymous's picture

I have a question, if anyone can answer, great. I've seen dozens of these types of things over the years and my reaction is wtf, of course if it happens right when you are ready to put on a trade, or have had one with whatever bias and theme, it rattles you, and you're mental capital ends up being off. Often times, imho, it happens at some turn.

So, my questions is, this almost seems intentional to me, and used as a way too do what it does rattle me, and thus, i should just stick with whatever plan for whatever reason, or am I making too much of nothing.

Thanks

AR's picture

Looks like we'll just have to test the definition of "reasonability limits."  We think since over 8,000 contracts traded at all levels up to 81.345 on 11/03, and another 4,000+ this morning (again at all levels up to 82.18), all busted of course, a jury of maybe 6 or 12 regular people might find it is "reasonable" that ICE is indeed on the hook. We know of many stories over the years whereby a large client of a clearing firm, or the firm itself trading for their own prop account, subsequently contacts the exchange and demands they bust or cancels trades. Regulators need to make and hold these exchanges accountable.

Anonymous's picture

exchanges bust trades every week. You guys really think its better not to bust error trades that are clearly errors rather than not busting them? Take away all rational and let the cpu's take over completely? I thought this site was fully against automation and the machine! What, now you like the super spike in your favor that happened in a flash?

The US markets are the best in the world. Busted trades are done when things happen that are clearly unfair and in error. This isnt the bush league gents...deal with it. If you dont like the rules, dont trade there.

Pedro's picture

... with liberty and manipulation for all.

Gilgamesh's picture

How are those impossible DNDN trade busts going?

Anonymous's picture

I was going to say the same thing. DNDN went from $20 down to $8 in a few mins. NASDAQ had no problems with this, even though plenty of investors got fucked. Why should ICE care about these spikes especially after it was the second time it happened? I don't get the opportunity to do a do-over, why should anyone else?

donatoloscalzo's picture

I do take exception with your comment:  whenever spikes up 200 points in less than a f....ing 30 seconds or down as on yesterday making a lot of money to the MMs is ok, but when it spikes up and benefits us is not ok? Who should do the growing up????  If you do not like it, then you trade somewhere else.................

Apocalypse Now's picture

Anonymous squid comments do not influence, you have no credibility

agrotera's picture

the trade busting is not the issue--the fact that the PPT playing (manipulating) the market is the issue. 

Anonymous's picture

Maybe they were from the futures desk of Kandahar Capital Associates (formerly known as Albert Qaeda & Sons).

Anonymous's picture

Hey Bennie, YBAS

YBAS- Your balls are showing. Most often usage is when playing cards. If bennie were holding the largest stack of chips and is blindly buying every pot because no one else can afford to call him.

Normal usage- Hey bennie, YBAS, eventaully someone is gonna come it here and kick them, I can't wait.

Pedro's picture

"Porsche, there is no substitute" Tom Cruise-Risky Business

Correction:

Zero Hedge, there is no substitute!

I love this website. 

I was affected indirectly.  My trades will continue to expire worthless if the free market is not free.

SilverIsKing's picture

"ZeroHedge, there is no substitute!"

Well said and something everyone can be thankful for this Thanksgiving.

Thanks for the food on my table, for my health and that of my loved ones, and a big shout out of gratitude for the creation of ZeroHedge.  Amen!!!

Now that that's been taken care of, how many bank failures tonight?

Anonymous's picture

This morning's U.S. Dollar Index futures action was an impulse response test: http://en.wikipedia.org/wiki/Impulse_response

It's no mistake that a Goldman Sachs analyst mentioned a possible 3-day 20% pop in the dollar. That mention was just yesterday.

"Busted trade" = cover story.

Apocalypse Now's picture

I like this theory - let's see how the investor class responds to being robbed in the open.  It's like the Ukraine, I believe it is a test case for a financial collapse cover story using H1N1 as the excuse for martial law and to control the population response in the collapse.

Apocalypse Now's picture

Movies like I am Legend and others in the zombie genre are just conditioning the populace to accept or treat those with "the disease" as already dead or zombies and it is morally acceptable to kill them before they kill you.

Now, all you have to do is paint political enemies or those that will not follow as infected - similar to labeling normal folks as potential terrorists or nazis or whatever other word that will elicit an emotional response and immediately make the majority dislike said labeled group.

The Nazis used movie propaganda and showed their targets as if they were rats scurrying about - they dehumanized them.  This was the first evil step towards bringing the population around to accepting the genocide.  Now what if the authorities stated that anybody not taking the H1N1 shot was a threat and could contaminate the rest of the  public? (even though there have been more adverse reactions from the shot than from the virus?)

My point is that we should be on the lookout for this in any form.  Would you go along with eliminating all of your cash so that it could all be tracked electronically through credit cards?  Now what if you were told that paper money was a vector that could spread the "disease - whatever the threat dejure was like H1N1" and that it had to be eliminated for your own good?  You might be more pliable, right?

"Today Americans would be outraged if U.N. troops entered Los Angeles to restore order; tomorrow they will be grateful. This is especially true if they were told there was an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will plead with world leaders to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well being granted to them by their world government." - Henry Kissinger

Think a few moves ahead, like in chess and pass the silver and gold.

Anonymous's picture

We got hit on some oil spreads about half a year ago, when the exchange messed up price info, they gave us some back, but someone in the trade wouldn't let it to be completely cancelled.

Anyone else remember that eurodollar move a year to a year and a half ago. 100 basis point sell-off over 2 minutes and straight back-up, I was away from my desk for a couple minutes and missed the whole thing. That though was not busted supposedly wasn't a fat finger.

But moves like that are tough to trade, sometimes you get paid nicely very quickly, but often they get busted and you took the risks of trading only to see it busted.

Anonymous's picture

Typo. When you wrote:
"i.e. firms, maker makers, etc."

I presume you meant either Market Makers. Or, these days, faker makers.